Catalyst Paper and Pacifica Deep Sea Terminals Inc. reach agreement on sale of Elk Falls site

RICHMOND, BC, Aug. 16, 2012 /CNW/ - Catalyst Paper today announced that it has reached agreement with Pacifica Deep Sea Terminals Incorporated on the sale of its Elk Falls site in Campbell River. The $8.6 million sale  of the 400-acre industrial site and adjacent properties is expected to close September 5, 2012. It completes Catalyst's comprehensive bid review process which began earlier this year.

"We are very pleased to have attracted an experienced developer with the capacity and an industrial concept that will fully utilize the site's infrastructure and bring new business and jobs to the region," said Kevin J. Clarke, Catalyst President and Chief Executive Officer.

The former pulp and paper site was indefinitely curtailed in 2009 and closed permanently in 2010. Since then, equipment has been decommissioned and demolition work has been completed to prepare the site for sale and redevelopment to other industrial uses. The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.

"The site is strategically located to serve a variety of marine, light manufacturing, clean energy and distribution uses," said Pacifica Owner and Director Harold Jahn, "and we intend to transform it into a dynamic industrial park and port facility with the goal of creating 400 full time jobs in the Campbell River region over the next three years."

Mr. Jahn is the director and owner of numerous Canadian private firms launched in a range of industries over the past 20 years. He is currently developing three industrial parks in northern Alberta.Within the new Pacifica Industrial Park, Mr. Jahn plans to base his companies that are presently developing algae based solar cells, a lithium battery manufacturing facility, ocean wave energy equipment fabrication and an electric vehicle assembly plant.

Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.8 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.

SOURCE: Catalyst Paper Corporation

Investors: 
Brian Baarda 
Vice President, Finance & CFO
604-247-4710

Media:
Lyn Brown
Vice President, Marketing & Corporate Responsibility
604-247-4713